Eagle Bancorp Montana(EBMT) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $4.7 million, or $0.60 per diluted share, representing a 30.3% increase from the previous quarter and a 37.8% increase year-over-year[1] - Revenues for Q4 2025 increased by 3.8% to $24.3 million compared to the previous quarter and increased by 13.7% year-over-year[15] - Noninterest income for Q4 2025 increased by 8.8% to $5.1 million compared to the previous quarter and increased by 12.2% year-over-year[16] - Net income for the quarter was $4,729 million, an increase of 30.3% from $3,630 million year-over-year[30] - Basic earnings per share increased to $0.61 from $0.47, reflecting a growth of 29.8%[30] Asset and Loan Management - Total loans were $1.52 billion at December 31, 2025, unchanged from a year earlier, but decreased by $38.8 million, or 2.5%, from the previous quarter[6] - Total loans amounted to $1,519,019,000, down from $1,557,771,000 as of September 30, 2025, reflecting a decrease of approximately 2.5%[28] - Net loans stood at $1,501,649,000, compared to $1,540,031,000 in the previous quarter, indicating a decline of about 2.5%[28] - Average loans for the quarter were $1,548,740 million, slightly down from $1,581,510 million, a decrease of 2.1%[34] Deposits and Equity - Total deposits increased by $100.4 million, or 6.0%, to $1.78 billion compared to the previous year, and increased by $29.4 million, or 1.7%, from the previous quarter[8] - Shareholders' equity increased to $191.8 million at December 31, 2025, compared to $174.8 million a year earlier[10] - Shareholders' equity increased to $191,814,000 from $186,486,000, marking a growth of approximately 2.1%[29] - Common shareholders' equity per share increased to $24.10 from $23.45, reflecting a growth of 2.77%[34] Interest and Expenses - Net interest margin (NIM) expanded to 4.08% in Q4 2025, a 14-basis point increase from the previous quarter and a 49-basis point increase year-over-year[12] - Total interest expense increased to $40,773 million from $35,514 million year-over-year, reflecting a rise of 15.9%[30] - Net interest income after provision for credit losses rose to $71,716 million, up from $62,920 million, representing a year-over-year increase of 14%[30] - Total interest and dividend income for the year ended December 31, 2025, was $108,411,000, up from $104,211,000 in 2024, reflecting an increase of approximately 4.2%[29] Credit Quality - The allowance for credit losses was $17.4 million, or 1.14% of total loans, at December 31, 2025, compared to 1.11% a year ago[19] - Nonperforming loans increased to $5,632 million from $4,122 million, a rise of 36.6%[33] - The allowance for credit losses to nonperforming loans ratio was 308.42%, down from 430.37% in the previous quarter, indicating a decrease in coverage[34] Operational Efficiency - The core efficiency ratio is calculated by excluding acquisition costs and intangible asset amortization from noninterest expense, providing insight into operational performance[26] - The core efficiency ratio (non-GAAP) improved to 73.63% in December 2025 from 77.33% in September 2025, indicating enhanced operational efficiency[36] - The efficiency ratio (GAAP) was reported at 74.82% in December 2025, an improvement from 78.56% in September 2025[36] Other Financial Metrics - The effective tax rate for Q4 2025 was 22.2%, compared to 26.8% in the previous quarter and 7.3% in Q4 2024[18] - Tangible common shareholders' equity (non-GAAP) increased to $153,760,000 in December 2025, up from $148,147,000 in September 2025[36] - Tangible assets (non-GAAP) totaled $2,068,313,000 in December 2025, slightly down from $2,081,467,000 in September 2025[36] - The tangible common shareholders' equity to tangible assets (non-GAAP) ratio increased to 7.43% in December 2025 from 7.12% in September 2025[36]